Abstract
Overview
Introduction
Part of the UK Plastic Cards 2007 series, this brief provides insight into
some of the most innovative value propositions from card issuers around the
world and examines how such products could be adapted by issuers in the UK.
The brief examines loyalty programs as well as other new developments in areas
such as card functionality and appearance.
Scope
- The brief looks at products in the US, Europe and the Middle East.
- Includes a detailed discussion on payment card loyalty, including
chip-based systems.
- Contains several examples of how issuers have used their cards to cross
sell other financial products.
- Includes a discussion on variable pricing strategies.
Report Highlights
Issuers in the Middle East and Turkey have some of the most advanced reward
programs in the world, often making use of the electronic chip on the card to
allow for instant redemption. Whilst this type of reward program has some
potential in the UK market, it has yet to be introduced.
In the US, several issuers have developed expertise in cross-selling other
financial products to their cardholders. Examples of this are an American
Express product that automatically opens a savings account for each
cardholder, and a Citibank product where cardholders receive rebates off their
mortgage payments.
UK issuers can also learn from their European counterparts. One of the most
interesting developments comes from a bank in Hungary which has issued a
payment card that acts as a credit card at POS terminals but a debit card at
the ATM.
Reasons to Purchase
- Find out what issuers are doing in other markets to attract and retain
cardholders.
- Understand innovative product designs across the areas of loyalty,
pricing, and product bundling.
- Discover how innovations in other markets could be applied in the UK.
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